Question
Consider the market for tea. Which of the following scenarios would definitely result in an increase in the price of tea? a. A new study
Consider the market for tea. Which of the following scenarios would definitely result in an increase in the price of tea?
a. A new study is published explaining the benefits of tea, and at the same time a new technology allowing for more efficient tea farming is discovered.
b. The price of coffee falls, and at the same time a new technology allowing for more efficient tea farming is discovered.
c. Consumers expect the price of tea to fall in the future, and at the same time a fire wipes out a significant portion of tea farms.
d. The price of coffee falls, and at the same time the cost of labor to farm tea decreases.
e. A new study is published explaining the benefits of tea, and at the same time a fire wipes out a significant portion of tea farms.
Which is the correct answer?
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